Dream House

Dream House
• In a contract dated June 15, 2006, Bobby agrees to build your dream house on a lot you own near Naples, Florida. The contract price is $500,000. The house is
to be completed and ready for occupancy by March 1, 2007. Bobby is paid a progress payment of $100,000, for labor and materials, in October 2006. In November 2006, a
hurricane strikes the Naples area and floods the work site. Bobby claims he had completed 50% of the job before the hurricane struck. Thereafter, Bobby performs no
further work and walks off the job. • On January 1, 2007, you declare Bobby to be in breach of contract and sign a contract with Sheila to complete the job for $350,000.
QUESTION #1 WRITE 5-6 SENTENCES IN PARAGRAPH FORM. PLEASE USE APA CITATIONS ABOUT THE CASE ABOVE “DREAM HOUSE”Is the work impossible for Bobby to perform? Should he be
excused from finishing the house?
CASE #2 Nightmare House. • After months of combing the real estate ads for a vacation property, you find an ad for a lovely Victorian cottage in a scenic small town about three hours
away. After viewing the house, you decide it is the perfect weekend place; and amazingly, the price is in your budget. In fact, you’re amazed that the house is so
affordable and has been on the market for a while. You sign a real estate purchase contract to buy the house from the current owners, who have lived there for over 20
years. You make the sale contingent upon an inspection of the property by a licensed construction engineer. The engineer inspects the house over the course of two days
and gives the house a clean bill of health. You proceed to closing, and buy the house. • After moving in, you learn for the first time from the neighbors that many actively claim this house is possessed by poltergeists, which the prior residents of
the house had reportedly seen. In fact, the house is listed in a national guide to haunted houses, and had previously been included in a walking tour of the town as
the haunted house. A newspaper article once described it as a charming Victorian (with ghost). You now jump at every creak and noise the house makes. You want the
seller of the house to take it back for failing to inform you that the house is haunted.

QUESTION# 2 ABOUT THE CASE ABOVE “NIGHTMARE HOUSE” WRITE 5-6 SENTENCES IN PARAGRAPH FORM, USE APA CITATIONS. Let’s delve deeper into Fraud. What are the elements of
Fraud and how do they apply here? What other laws might govern a person selling a house?

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